I attended a listing presentation class today that encouraged us to present the seller with options to increase showings by having them offer buyer or buyer agent incentives. Instead of offering the standard 3% buyer’s agent commission (in Texas) you would recommend to the seller to offer the buyer’s agent 3.5% and that would generate more activity to their home. I will have to say that bothered me to think an agent would choose a home with a higher buyer’s agent commission over one that is standard just to get that little extra. Are there really agents that only show what’s in their best interest? How can that be with all the technology and numerous Real Estate websites to view homes?
To add fuel to my thought: a short time ago while a couple took a moment to discuss a home I recently showed them in a new home community the sales representative asked me why I didn’t ask about the buyer agent commission bonus….My reply “I would assume that it was the standard 3%” The represented informed me the home my clients were looking at was listed recently having a bonus but the bonus was inadvertently not listed in the print article. She proceeded to tell me the bonus and stated she gets calls all the time from buyer’s agents that want to know what the offered bonus & buyer agent’s commission is before they will even show their buyers the community. She went on to tell me when they don’t have a buyer agent bonus or incentive their showings decrease. I found that disturbing for a real estate professional to be so self-indulged.
Maybe I’m from the old school of honesty, customer service and a home being PRICED RIGHT…. I would never let a buyer agent commission or incentive influence my decision on what particular builder, community or home I show my clients. When I work with my clients, it’s to get them the best house for their home needs not my financial needs. But consider in San Antonio alone, on average there were 6000 agents registered with SABOR for 2010 with an average of 3 closed transactions for the year. If that average agent is showing buyers around and it is only their 1st deal of the year….do you think incentives or bonuses matter? Has it come to dangling a bonus or incentive with your listing to get adequate showings?
